What Does Investment Management Software Do?
If you have invested in countless ventures, businesses, and assets, managing them would be extra complicated. Thankfully, spreadsheets make things easier, but it would be much more complicated if you were clueless about how spreadsheets work or how to operate them. What you need is investment management software.
Also known as private wealth management software, investment management software automates the tracking and managing of investment portfolios.
Here are the primary functions of investment management software:
1. Tracks your investment
One of the advantages of investment management software is it automates the tracking, allocation, and analysis of investments, from stocks to assets in one centralised board that you can access anytime and anywhere. This feature is also present in family office reporting software.
2. Tracks portfolio performance
An investment portfolio is the compilation of all financial assets an investor owns. The financial assets may include stocks, bonds, cash, and other commodities.
The task of a wealth management solution is to make portfolio performance construction, tracking, and analysis less complicated. Therefore, the investor can effortlessly determine whether their portfolio is growing and gathering potential capital gains.
3. Gathering market data
Before you can fully evaluate the performance of the portfolio, you should have a set of multiple benchmarks in the market segment. The investment management software helps gather data from the current market and economic events, which you can compare against the performance of your portfolio. The data serve as a benchmark for portfolio performance.
With the help of market data, investors can make better and more educated decisions with their investments and remaining assets.
4. Trading
Besides serving as a benchmark for portfolio performance, you can also use the market data you gathered using your wealth management solution for market insights.
For instance, during trying economic times, many businesses are struggling to survive. It is an opportunity for investors to acquire enterprises with a profit potential by inspecting their portfolios. After the analysis, investors can trade, acquire, or invest in these businesses.
5. Analyse risks
Using the previous and current market data, investors can determine whether their current investments will plummet and if it is wise to trade them before the economic woes. Similarly, during an acquisition, investors can determine whether or not the trade would hurt or improve their portfolios.
If you find it difficult to manage your assets and investments, a wealth management solution can make your life easier.
Canopy provides high-quality investment management software for investors and family offices. Visit Canopy today.
